Via Rail has chosen the German firm Siemens over Bombardier for a nearly billion dollar contract to modernize its passenger service along the Quebec City to Windsor corridor. And Siemens could receive a further nearly $500 million from VIA if it exercises options for 16 more trains on top of the 32 awarded Wednesday. The government came prepared to explain why Quebec’s Bombardier got the cold shoulder but there can be little doubt the company has damaged its reputation badly with the notorious failure to deliver trains and streetcars on time to the TTC and Metrolinx. The contract doesn’t require any Canadian content. Siemens will build the trains at its North American headquarters in California. Via Rail and Siemens also announced a 15-year technical services and parts agreement valued at $355.5 million. VIA Rail repeated arguments previously made by federal Transport Minister Marc Garneau that the decision to bypass Bombardier is justified because Canada’s free trade agreements with the European Union and the United States don’t allow Via Rail to favour Bombardier in the awarding of contracts.
